City, county approve tax rates, budgets

Published 7:00 pm, Wednesday, September 26, 2007

The commissioners approved the county's 2008 budget on Sept. 20 and the tax rate on Sept. 25. The Hempstead Council approved its new budget and tax rate during a meeting Monday night.

The county budget calls for $20.592 million in total expenditures from all funds. The total incudes $13.7 million from the General Fund and $5.1 million from the Road and Bridge Fund.

The 2008 budget will be funded through ad valorem taxes. The county's new tax rate of 62.880 cents per $100 of assessed valuation is approximately four cents lower for 2008, compared to the 2007 tax rate of 66.604 cents. The assessed valuation in the county increased almost $272 million from last year and the new tax rate is expected to generate almost $14 million in tax revenues. The county expects to collect approximately 91 percent of the tax levy within the current tax year with just over $1.2 million becoming delinquent on July 1, 2008.

In discussing the new tax rate, County Judge Owen Ralston said, "The effective tax rate, which would bring in the same amount of tax revenue this year as last year, is 59 cents per $100 assessed valuation. We propose the 62-cent rate and in effect lower the rate from 66 cents. With our county growing the way it is, it is hard to get by with what we had last year, so we are proposing to increase the rate to between the effective tax rate and the 2007 rate."

The judge noted that if a property owner's valuation did not increase and remained the same, the person's tax bill would be less than last year.

The Hempstead City Council approved a budget showing expenditures of $9.2 million for all funds and revenue of $9.2 million. The budget includes expenditures of approximately $3.2 million from the General Fund and $4 million from the Electrical Department.

Hempstead's tax rate of 33.55 cents includes 33.36 cents for Maintenance and Operations and 0.0019 cents for Debt Service. The new tax rate reflects a decrease from last year's tax rate of 36.39 cents per $100 assessed valuation.

Total assessed valuations in the city increased from $154 million to $172 million during the past year.